Five Stocks For Riding This Market Rally

Today I’m going to focus on the long side because there are so many attractive charts.

Achillion Pharmaceuticals (ACHN) is waking up. It had a head-and-shoulder break from 5 1/2 to 12 1/2 in about six weeks in the December-January period. It then formed a big wedge, broke down in April, went flat in the May-July period, and then had an ugly 3-day decline out of the base pattern in August. The stock reversed, consolidated above the moving averages, and on Tuesday had a move that took out the entire upper trendline of the last 4 months. It may test the major declining topsline and lateral price resistance. If it gets up through 8 1/4-1/2 it could fly, with a target of about 10 3/4.

Cell Therapeutics (CTIC) had a big follow-through day on Tuesday, up 99 cents to 3.56, or 38 1/2%, on 12.8 million shares. It has broken above its major declining topsline, doubling in two days from 1.80 to 3.68. It may very well get up to the 4.00 level before it levels off or consolidates.

8×8 (EGHT) had a stellar day on Tuesday, up 6% or 36 cents, closing at the high for the day going away on 1.9 million shares. More importantly, the consolidation of the last several weeks was taken out, and a swing trade is on its way. Raising target to 7 1/4 and beyond that 8 1/4.

Hovnanian Enterprises (HOV), while lagging some of our other picks of the last few weeks, has broken solidly out of a wedge pattern in the last couple days. It went up to resistance, backed off a few days ago, and on Tuesday popped 29 cents to 3.60, or 8.76%, on over 10.3 million shares. At this point, look for something up around 4.25 short-term and 5.00 intermediate-term.

U.S. Silica Holdings (SLCA), after breaking the declining topsline, ran up to the line of resistance, backed off and formed a little head-and-shoulders pattern. Tuesday was a breakout day, as it jumped 1.11 to 13.81, or 8.7%, on a little over 600,000 shares, the best volume in about a month. Look for a move to test the 15.90-16.00 range short-term.

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